Laserfiche WebLink
0 <br />ARTICLE 2 <br />CONSTRUCTION OF MODIFICATIONS TO <br />THE PLANT TO PROVIDE 120 MGD FIRM CAPACITY <br />2.1 In General <br />2.1.1 It is agreed that each Participant has an equity ownership interest in the Plant's <br />Pumping and Production Capacity in proportion to its capital investment from time to time in such <br />Pumping and Production Capacity. The Participant Exhibits show the initial and projected <br />ownership interests up to the time of completion of the Modification Project. The Participants agree <br />to the construction of certain rehabilitation and modifications to the Plant in order to ensure the Plant <br />can provide the 120 MGD firm capacity of potable water for the Participants ("Modification <br />Project"). The Participants also recognize that the Managing Participant did not recover certain costs <br />for (1) the Plant and Raw Water Transmission Facilities and (2) Distribution and Pumping Facilities. <br />2.1.2 In order to pay for the cost of the Modification Project and obtain the 120 MGD firm <br />production capacity, (1) each of the Participants agrees to pay its pro rata share of Modification <br />Project Cost and (2) each Participant (except the Managing Participant) agrees to pay the Plant and <br />Raw Water Recoupment Cost. Those Participants desiring an increase in Pumping and Distribution <br />Allocation Factors shall pay the Pumping and Distribution Recoupment Cost. The Participant <br />Exhibits show the allocation of such costs for each Participant. It is anticipated that all of the City <br />of Galveston's beneficial interest in the Plant, which is held in the name of the Gulf Coast Water <br />Authority, will be sold to other Participants prior to the date of operation of the Modification Project <br />and the City of Galveston will accrue no benefit from the Modification Project. Thus, each of the <br />A:\EWBI0973.RVI <br />L.D. File No. 80-99146-01 <br />2 <br />February 9. 2000 <br />